To build or to buy, that is the question
BY ANDREA COX
It’s every homebuyer’s dilemma — to buy an older home in an established neighbourhood, or a new home in a new community.
With myriad options to choose from, narrowing down the choices can be overwhelming.
“I always filter everything through an investment lens,” says Todd Talbot, real estate guru and co-host of Love It or List It Vancouver, a TV show on the W Network. “But I also believe that if it is done well, you can have your cake and eat it, too.”
There are a couple of different ways to look at it, he says.
“The new build has a certain mystique to it — a certain flair,” says Talbot, recalling that the first home that he ever purchased, a condo, was brand new. “I fell in love with the idea.”
Certainly, a new home has a visual and kinesthetic attraction. You can smell the newness, see the perfection of the finishes and know that most likely, you won’t have to do a thing to it for quite a while.
“The big trap is that you see the show suite and you fall in love with the idea of it,” says Talbot. His advice is to be clear about what the base price includes — from landscaping and the basement development to the appliance package.
Clarity surrounding timelines is also of tantamount importance when buying. Will you be selling in five years? Ten years?
You don’t want to detract from the fun of buying a house, but it is necessary to be realistic because, eventually, you are going to sell.
That said, Talbot suggests buyers understand the future development of a new community and the inherent future change in variables like traffic, noise, landscaping and neighbours. “Chances are in five to 10 years, when you go to sell your home, it will be a much different environment.”
Ideally, the goal is to find a neighbourhood that is on the upswing, with the anticipation of capital appreciation.
“I am willing to buy in a neighbourhood that is not necessarily the absolute best, if it has some room to grow. I like neighbourhoods that are dynamic.”
As the saying goes, real estate is all about location, location and location, says Ross Pavl, a Calgary-based realtor with Re/Max.
“You definitely need to consider the area,” he says. “It has to always be in demand. You want to be close to amenities, to transportation, a university and a major work area. All of those factors will be a huge influence when you go to sell.”
When a city surpasses the population threshold of 1 million, the market shifts, he says. “Inner-city real estate will appreciate almost twice as fast as the suburbs,” says Pavl.
The demand is all about lifestyle — being close to the restaurants and theatres, not to mention the walkability factor. But that is also tempered with the fact that Calgary buyers are attracted to the appeal of the new.
“As soon as something is 10 years old, everyone in Calgary considers it old,” he says. “They would rather just buy a piece of land and build something new.”
Of course, price is also a factor. Buying a smaller home closer in and boosting its market appeal through renovations are certainly coveted options, but for many, the higher price takes them farther out into new communities in the suburbs, where prices are more affordable.
When it comes right down to it, real estate investments are all about controlling the variables — the location, amenities and visceral experience of the home, says Talbot. “Not to say that one home or location is better than the other, it’s just all about understanding what you are buying.”
Photo By: Captain Camera
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